All Forum Posts by: Drew L.

I am buying a vacation cabin from an elderly family friend, no relation. I have questions how to structure the deal. 

The lady I'm buying from does not have much income, retired teacher and they made some choices early in the retirement that have left her with little of her pension left (~16k per year).  She owns (outright) her primary residence and the vacation cabin (what I'm buying).  The cabin was never a rental, and the basis is $25k in 1986.  We have agreed on an $80k purchase price, including the boat slip (private property, not real estate).  The reason for the sale is to provide her a monthly income while still providing some occasional access to her daughter.  We are all good friends and having the occasional access is not a problem for us.  

We will be owner financing the deal, she doesn't want to pay the upfront capital gains, and it is a good deal for me.  She would like the terms of the financing to role to the daughter when she passes.  She nor her daughter are disciplined with money, so this monthly payment structure is preferred by them both. 

She isn't on medicaid assistance now, and is in good health for 82 years old - but you never know.   I am worried about the look back period should something happen and she goes to a retirement home. 

Now my question, How do I structure the deal to protect all parties and keep our deal's goals intact? (Monthly income for her, protect me from medicaid liens, keep her eligible for Medicaid, TOD the loan to daughter)

We were going to do a transfer of property with a warranty deed (I'll do a title search and insurance) and on the outside of the deal would be a personal loan for the purchase price.  I want to protect myself and leave her eligible for benefits of the time comes. Any insight would be appreciated.

Thank you.

@mike Haynes. It was the bank that owned the property that made the trouble. It was one of the BIG banks so their red tape was awful. One example, we had to resubmit all the paper work after they accepted the offer because we put Ave. Instead of avenue.

My bank was great.

Hello BP community! Thank you all for the information you have bestowed on me and my wife recently. We have ventured into the buy and hold investing with our first SFR last November.

Going through terrible negotiations with the bank that held the property, finally closing, rehabbing (on our own), finding our first tenant, replacing sewer lines, and a leaking main waterline have created quite the first time landlord experience. But since that first month everything has been going great, rent payments are being ACH deposited every month on time, tenant has had no complaints, and the house seems to be holding together.

As many have said on the podcasts, perseverance and following through until you met your goal, has been the best advice so far.

I look forward to meeting some local entrepreneurs in my area. Send me a message.

Good luck to everyone out there!

I just wanted to add myself to the list of Springfield MO "homies."

I am new to the site, been doing a lot of reading and listening to the podcasts. There is a ton of knowledge to be had here.

Have @Account Closed , @Bill Gulley , or @Kenneth Woods you guys been to any RE Club meetings around the area?